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The uptrend in Adani Power shares may continue over the medium term despite a more than 30% over the last six months, as the stock remains supported by strong earnings growth, improving capital efficiency, and declining leverage, according to brokerage firm PL Capital. Adani Power share price has defied stock market weakness this year, rising by over 35% year-to-date and over 30% in the last six months, as per BSE data. Equity benchmark Sensex, on the other hand, is down over 13% year-to-date and 2% in the last six months. Adani Power stock dropped to a 52-week low of ₹128.35 on 23 January. However, it soared to its 52-week high of ₹254.15 after four months on 29 May. On a monthly scale, the stock is up nearly 2% so far in September after suffering losses in the last three months. On Friday, 25 September, the stock climbed nearly 2% to hit an intraday high of ₹203.50, looking set to snap its four-day losing run. During market hours on 25 September, Adani Power said NCLT, Mumbai Bench, on 24 September, approved the merger of its wholly owned subsidiary, Vidarbha Industries Power Limited, with it. Earlier on 4 August, NCLT, Ahmedabad Bench, had sanctioned the scheme of amalgamation of nine subsidiaries of Adani Power - (i) Adani Power Dahej Limited, (ii) Kutchh Power Generation Limited, (iii) Resurgent Fuel Management Limited, (iv) Mahan Fuel Management Limited, (v) Orissa Thermal Energy Limited, (vi) Korba Power Limited, (vii) Anuppur Thermal Energy (MP) Private Limited, (viii) Mirzapur Thermal Energy (UP) Private Limited, and (ix) Emberiza Infra Park Limited- with the company. With the NCLT, Mumbai Bench order, the company's merger scheme, proposed on 30 October 2025, has received the requisite approvals from both the NCLT, Ahmedabad Bench and the NCLT, Mumbai Bench, said the company. Brokerage firm PL Capital has initiated coverage on the stock with a "buy" recommendation, pegging the target price of ₹259, implying an upside potential of almost 30% from the stock's 24 September close of ₹199.60 on the BSE. "We value Adani Power at 18 times September 2028E EBITDA, deriving a target price of ₹259, equivalent to nearly 10.5 times FY32E EBITDA on a 12.5% discount rate. The premium valuation is supported by stronger earnings growth, improving capital efficiency, and declining leverage," said PL Capital. PL Capital's coverage on the stock with a buy rating is supported by the company's strong earnings growth trajectory, as the brokerage believes recently signed PPAs (power purchase agreements) offer higher capacity charges. Moreover, thermal power remains critical for meeting India’s baseload and reliability requirements, which is a key positive for companies like Adani Power. "Adani Power, India’s second-largest thermal power producer, currently accounts for nearly 7% of India’s coal-based installed capacity and is targeting a substantial expansion in capacity from 18.3GW in FY26 to 41.9GW by FY32, increasing its market share to nearly 14%," PL Capital noted. "The nearly ₹2 lakh crore expansion capex (nearly ₹8.4 crore/MW) is manageable, with net debt/EBITDA expected to peak at just 2.5 times in FY29E, among the lowest across peers. Importantly, execution risk is relatively contained, with 100% of land and BTG equipment secured, nearly 60% of capacity additions planned at brownfield sites, and 56% of the expansion pipeline already tied up under long-term PPAs," said PL Capital. The brokerage firm forecasts a 21% EBITDA CAGR over FY26–29E, driven by expected capacity additions of 1.3GW, 1.6GW, and 4.0GW in FY27E, FY28E, and FY29E, respectively. "The premium to peers is supported 25% EBITDA CAGR over FY26–32E, while RoE improves to 23% by FY32E from 19% in FY26. Net debt/EBITDA is expected to decline to nearly 1 time by FY32E from 2.3 times in FY26, providing increasing balance-sheet headroom as the expansion cycle progresses towards nuclear," said PL Capital. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This article is for educational purposes only and does not constitute investment advice. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary. Catch all the Business News , Market News , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates. Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.
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